May 30 (Bloomberg) -- South Korea’s won advanced to its
strongest level in three weeks on speculation exporters are
converting earnings. Government bonds rose.

The currency gained for a third day after U.S. Treasury
Department assistant secretary for international finance Charles
Collyns said South Korea should be more flexible in managing the
won and let it appreciate, according to the Korea Economic Daily.

“Exporters are selling dollars to translate their income
at the end of the month, pushing up the won,” said Seo Jeong
Hun, a currency analyst at Korea Exchange Bank in Seoul. “The
comments from the U.S. Treasury official are giving more room
for the won to rise, even though concerns that authorities may
try to slow rapid won gains seems to be capping further
increases.”

The won climbed 0.2 percent to 1,080.10 per dollar at the 3
p.m. close in Seoul, according to data compiled by Bloomberg.
The currency touched 1,078.70, the strongest level since May 11.

Asian countries must improve cooperation with one another
to cope with possible financial risks as they are still
vulnerable to capital flows, South Korean Vice Finance Minister
Yim Jong Yong said at a forum on Asian bond markets in Seoul
today.

The yield on South Korea’s 3 percent note due December 2013
fell two basis points, or 0.02 percentage point, to 3.58 percent,
according to prices from Korea Exchange Inc.